The effect of the COVID-19 pandemic on the Scandinavian housing market is indeed impressive. Rather than staying away from the real estate market, people are rushing to buy homes. Many are moving into the big cities to enjoy a better quality of life. Housing prices are fueled by growing demand and exuberant spending. The booming housing market is a bright spot for the Nordic economy, which has been shaken up by the coronavirus pandemic. Social distancing and other protective measures have caused economic losses. Norway, which barely avoided a lockdown this time, saw its economy shrink by 2, 5% last year in what represents the weakest development since 1945.
Mortgages are stricter, down payments are higher, and there’s a tight number of homes, but nothing seems to deter homebuyers. People are willing to invest in bigger, more expensive properties. Housing demand is stronger than ever. The question now is: Can it last? Well, the rollout of COVID-19 vaccines is an important step in returning to normal life. If vaccine distributions become widespread, economic recovery is possible. Getting back on topic, buyers have fewer competitors. While some of them are first-time buyers, others are shopping around for a second home. Let's see how the pandemic has impacted the Scandinavian housing market.
House prices in Denmark continue to rise
Better prospects for selling various types of property account for the increase in pricing. At present, sellers are able to secure higher prices for their properties, which means that they're getting good value. In spite of the relatively high prices, the Danish housing market remains stable. Consumers, as well as companies, are cautious when it comes to borrowing and lending money. The point is that home prices are aligned with the economic reality, so things are exactly as they were in the years preceding the financial crisis.
By region, demand is strong in the Capital region, Zealand region, Southern Denmark, Central Denmark, and North Jutland. Detached/terraced houses are very popular, besides holiday homes. It's important to understand that housing represents a major asset of Danish households, together with pensions. The period following the Second World War, individual homeownership was heavily promoted. Most importantly, home ownership was made attainable for all. Homeowners today can opt for fixed-rate mortgages and longer fixing periods.
Norway’s house prices have reached the highest level
Bloomberg informs us that Norway’s house prices have rebound to reach the highest levels in the last five years. Norway’s economy has survived owing to the gas and oil production, standing out among wealthy nations. Income, consumer confidence, and demographic changes don’t have a significant effect on housing prices for either city. The surge in property purchases is largely motivated by the need for more space. People with stable jobs, substantial savings, and good credit scores are taking advantage of the situation to shop for homes that can meet their needs.
Since real estate is an essential service, agents are allowed to carry out their activity, so they don’t have to undergo restrictions. Shopping for a home can be done without the help of a realtor, but it’s recommended to seek professional help. If you happen to be interested in purchasing a house or apartment in Norway, don’t hesitate to work with a real estate agent because you don’t want to be saddled with the fees. If you look hard enough, you’ll find the perfect real estate agent who can give sound investment advice.
So, after a lack of performance in the past couple of years, the housing market is finally picking up. The house price index rose in Bergen, Trondheim, and Stavanger. Finding a real estate broker to work with isn't difficult. If normally the buyer would meet with the professional face to face, now, it's a completely different story. Virtual meetings are arranged to prevent the spread of COVID-19. Additionally, virtual tours make real estate decisions possible. It's interactive, allowing prospective buyers to view the property at their own pace.
Real estate brokers of Sweden talk about a pandemic effect
Of course, we have to talk about the Swedish housing market. Prices have soared to the highest levels ever recorded and numerous people are leveraging the bank stimulus to upgrade into bigger homes. Sweden's central bank has agreed to lend approximately 500 billion crowns to companies via banks so as to increase credit flows and stop the COVID-19 pandemic from ravaging the financial markets. Therefore, money is being pumped into the system (and into homes). Professionals are talking about a pandemic effect.
If the demand for property continues to be higher than the supply, prices will continue to rise. It's believed that they're not going to recede any time soon. Recently, there has been a building boom. Properties are standing empty, but all that will change soon enough. Those who are looking forward to find a new dwelling focus their attention on areas such as Greater Stockholm, Greater Goteborg, and Greater Malmo. Despite the fact that Sweden hasn't imposed a full lockdown, it has been hit by the coronavirus pandemic from a financial standpoint. The housing boom might help the economy adjust the adverse effects.
To sum up, the Scandinavian housing market is the craziest it's been in years, with buyers rushing to invest in property. Many of us haven't been prepared for what happened. While we were succumbing to the coronavirus, house prices went up. Those who thought they would never sell a property again have been proven wrong. Somehow, the home buying population has become wealthier. What's more, people are interested in a change of scenery.
Real estate agents, as far as they're concerned, are ready for the challenges ahead of the road. They've set up hand sanitizing stations and carefully wiped down surfaces. Realtors have adapted to hosting virtual tours and virtual open houses to cater to the needs of buyers who aren't willing to attend in-person showings. Scandinavian real estate agents go beyond what's required of them and show the best properties on the market.